Global liquidity and settlement system

ABSTRACT

A computer-implemented method for performing a digital currency escrow swap on a network of nodes is disclosed. The method includes placing transfer orders through an intermediate node and sending signed transfer order transactions with digital wallets to an escrow swap node. The method further includes performing a transfer-in order finishing operation by requesting a transfer of digital currency to the escrow swap node and receiving the digital currency via the transfer-in node. For each sell order, digital securities are transferred to the escrow swap node via the transfer-out node. The digital securities are sent from the escrow swap node. For each transfer-out order, the digital currency is sent to the transfer-out node. The method includes an analogous operation to finish a transfer-out order.

CROSS-REFERENCE TO RELATED APPLICATION

This application is a continuation of U.S. patent application Ser. No.16/397,852, filed Apr. 29, 2019 and titled “Global Liquidity andSettlement System,” which claims priority to U.S. Provisional PatentApplication No. 62/663,889, filed Apr. 27, 2018 and titled “GlobalSettlement Network,” which are incorporated herein in their entirety bythis reference thereto.

TECHNICAL FIELD

The disclosed teachings generally relate to a decentralized settlementnetwork. The disclosed teachings more particularly relate to adecentralized global liquidity and settlement system that enablesparticipants that utilize cryptocurrency platforms to compliantly settlecross-border token trades.

BACKGROUND

The advent of cryptocurrencies and blockchain tokens can fundamentallyremake private capital markets. In 2017, the aggregate value of alltokens grew to $37.7 billion, which is a nearly 19,000% increase overthe prior year. Further, total capital raised through initial coinofferings (ICOs) in 2017 was $6.2 billion. That number increased in 2018to $7.9 billion, though barely 20% of the total was raised in the secondhalf of the year. To provide a benchmark for funding that occurs throughtoken sales, consider that the total raised by U.S. startups (i.e., seedand Series A) in 2017 by using traditional private placement process isestimated to be $8 billion.

Further expansion of the blockchain-enabled capital market is threatenedby a fundamental problem that regulators in the United States and otherjurisdictions are deeming that many tokens are securities and therebyinvoking the application of securities laws to those tokens. Thisincludes requiring security tokens to be traded only on regulatedtrading systems and exchanges. Existing trading platforms, most of whichlack licenses in any jurisdiction, find themselves faced with a verysignificant dilemma. If the trading platforms wish to facilitate thetrading of tokens that regulators may deem to be securities, they caneither: (a) register as a broker-dealer in each country where they havea material numbers of users, (b) choose not to register, and riskbecoming the target of regulatory enforcement and other legal actionfrom such countries, or (c) cease enabling trading by users in thesecountries. These choices present token trading platforms with materialproblems.

SUMMARY

The disclosed embodiments include a computer-implemented method forperforming a token escrow swap on a network of nodes. The methodincludes placing buy/sell orders through a broker-dealer node andsending signed buy/sell order transactions with cryptocurrency walletsto the token escrow swap node. The method further includes performing abuy-order filling operation by requesting a transfer of currency tokensto the token escrow swap node to fill the buy order and receiving thecurrency tokens via the buyer node. For each sell order, security tokensare transferred to the token escrow swap node via the seller node. Thesecurity tokens are then sent from the token escrow swap node. For eachsell order, the currency tokens are sent to the seller node. The methodincudes an analogous operation to fill a sell order.

Other aspects of the technique will be apparent from the accompanyingFigures and Detailed Description.

This Summary is provided to introduce a selection of concepts in asimplified form that is further described below in the DetailedDescription. This Summary is not intended to identify key features oressential features of the claimed subject matter, nor is it intended tobe used to limit the scope of the claimed subject matter.

BRIEF DESCRIPTION OF THE DRAWINGS

Various features and attributes of the disclosed technology will becomemore apparent to those skilled in the art from a study of the DetailedDescription in conjunction with the drawings. Embodiments of thedisclosed technology are illustrated by way of example and notlimitation in the drawings, in which like references indicate similarelements.

FIG. 1 is a high-level diagram of a process for a global liquidity andsettlement system (GLASS) network according to some embodiments of thepresent disclosure.

FIG. 2 is a block diagram that illustrates a flow to submit trades in anetwork according to some embodiments of the present disclosure.

FIG. 3 is a flow diagram that illustrates a settlement process on theGLASS network according to some embodiments of the present disclosure.

FIG. 4A is a flow diagram for a buy order operation of a token escrowswap according to some embodiments of the present disclosure.

FIG. 4B is a flow diagram of a sell order operation of a token escrowswap according to some embodiments of the present disclosure.

FIG. 4C is a flow diagram of an operation to fill a buy order for atoken escrow swap according to some embodiments of the presentdisclosure.

FIG. 4D is a flow diagram of an operation to fill a sell order for atoken escrow swap according to some embodiments of the presentdisclosure.

FIG. 5 is a screen view of a web security token trading interfaceaccording to some embodiments of the present disclosure.

FIG. 6 is a block diagram that illustrates an example processing devicein which aspects of the disclosed technology can be embodied.

The drawings depict various embodiments for the purpose of illustrationonly. Those skilled in the art will recognize that alternativeembodiments may be employed without departing from the principles of thetechnology. Accordingly, while specific embodiments are shown in thedrawings, the technology is amenable to various modifications.

DETAILED DESCRIPTION

The embodiments set forth below represent necessary information toenable those skilled in the art to practice the embodiments andillustrate the best mode of practicing the embodiments. Upon reading thefollowing description in light of the accompanying Figures, thoseskilled in the art will understand the concepts of the disclosure andwill recognize applications of these concepts that are not particularlyaddressed herein. It should be understood that these concepts andapplications fall within the scope of the disclosure and theaccompanying claims.

The purpose of the terminology used herein is only for describingembodiments and is not intended to limit the scope of the disclosure.

Reference to “one embodiment” or “an embodiment” means that a particularfeature, structure, or attribute described in connection with theembodiment is included in at least one embodiment of the disclosure. Theappearances of the phrase “in one embodiment” in this disclosure are notnecessarily all referring to the same embodiment, nor are separate oralternative embodiments necessarily mutually exclusive of otherembodiments. Moreover, various features are described that may beexhibited by some embodiments and not by others. Similarly, variousrequirements are described that may be requirements for some embodimentsand not for other embodiments.

As used herein, unless specifically stated otherwise, terms such as“processing,” “computing,” “calculating,” “determining,” “displaying,”“generating,” or the like, refer to actions or processes of anelectronic device that manipulates and transforms data, represented asphysical (electronic) quantities within the computer's memory orregisters, into other data similarly represented as physical quantitieswithin the device's memory, registers, or other such storage medium,transmission, or display devices.

When used in reference to a list of multiple items, the word “or” isintended to cover all of the following interpretations: any of the itemsin the list, all of the items in the list, and any combination of itemsin the list.

Unless the context clearly requires otherwise, throughout thedescription and the embodiments, the words “comprise,” “comprising,” andthe like are to be construed in an inclusive sense, as opposed to anexclusive or exhaustive sense; that is to say, in the sense of“including, but not limited to.”

As used herein, the terms “connected,” “coupled,” or any variantthereof, means any connection or coupling, either direct or indirect,between two or more elements; the coupling of or connection between theelements can be physical, logical, or a combination thereof. Forexample, two components may be coupled directly to one another or viaone or more intermediary channels or components. As another example,devices may be coupled in such a way that information can be passedthere-between, while not sharing any physical connection with oneanother.

Where context permits, words in the Detailed Description using thesingular or plural form may also include the plural or singular form,respectively.

As used herein, the “global liquidity and settlement system” (GLASS)refers to a decentralized network or platform that enablescryptocurrency platforms to compliantly settle cross-border tokentrades. Exchanges can market to and serve participants in anyjurisdiction regardless of whether the tokens being traded are deemedsecurities in that jurisdiction.

As used herein, the term “trade referral” or variants thereof is acomponent of the GLASS network. An entity can have a trade referrerrole; the user type being a token trading platform or exchange. Afunction of this role is to obtain compliant settlements of trades bynon-resident participants. A trade referrer is not required to have astake in the GLASS network. The trade referrer pays a non-refundablenetwork fee for each trade submitted to the GLASS network, as well as asettlement fee for each trade cleared through the GLASS network.

As used herein, the term “trade settlement” or variants thereof is acomponent of the GLASS network. An entity can have a “settlementprovider” role; the user type being a licensed entity (e.g., Iternativetrading system (ATS), broker-dealer). A function of this role is toshare in network fees and earn settlement fees by settling trades inlocal jurisdictions for trade referrers. The settlement provider needs astake in the GLASS network (i.e., stake in GLASS tokens). A settlementprovider can receive a share of network fees in proportion to its stakerelative to aggregate settlement provider stakes. The settlementprovider can also receive settlement fees for each trade that it clears.

The disclosed GLASS network can eliminate the need for exchanges todetermine whether tokens are securities in any jurisdiction (e.g.,country). Each jurisdiction can have one or more licensed entities(e.g., ATS, broker-dealer) on the network to settle trades in thatjurisdiction without materially impeding trading speeds. Participatingexchanges can lower their regulatory risk because a local regulatedentity can be responsible for each trade's compliance with localsecurities laws. Because the trades will be settled by entities licensedfor securities transactions, the distinction between utility tokens andsecurity tokens is largely irrelevant for participating exchanges. Thiswill free exchanges to acquire customers in the U.S. and otherjurisdictions now actively regulating tokens as securities.

SHARESPOST, of San Francisco, Calif., pioneered a platform that enablesonline trading of shares of private companies by matching buyers andsellers in transactions involving shares of the private companies.SHARESPOST also pioneered in the digital securities space by completinga secondary trade of a digital security and being the first to involvethe custody of clients' digital assets. The trading platform would beregistered with the U.S. Securities Exchange Commission (SEC) as an ATSand a member of the financial industry regulatory authority (FINRA) as aclearing broker-dealer.

The GLASS network can include registered entities in differentjurisdictions to facilitate trades. The registered entities can besettlement providers on the GLASS network that provide immediatecoverage in key financial centers. To earn settlement and network fees,other licensed platforms join the network as settlement providers. Anadministrative entity of the GLASS network can provide regulatory reviewof settlement providers and ensure that each operates in compliance withthe local laws of its jurisdiction. In some embodiments, a community ofsettlement providers and trading platforms are self-governing.

The disclosed embodiments include a marketplace for investorparticipants to interact with token issuers, to provide access toprimary issuances, and secondary trading, as well as data and researchto help the participants make informed investment decisions. Trading canbe linked to administered brokerage accounts where both fiat andcryptocurrencies, as well as digital and traditional securities, can besecurely custodied and managed. The inventor participants are registeredentities including institutions or accredited investors. They canprovide buy-side demand from the U.S. seeking liquidity on the GLASSnetwork. Therefore, the GLASS network allows for participating exchangesto settle compliant transactions in tokenized securities across multiplejurisdictions.

General Overview of Token Markets

In 2017, companies raised $6.2 billion through the primary sale oftokens. This represented a 6,900% increase over capital raised by tokenissuers in 2016. Although initial coin offering (ICO) fundraisingincreased from 2017 to 2018, ICO fundraising tightened over that period.The tightening can be attributable to certain factors. For example, afactor that has led to a decrease in ICO fundraising is compliance costthat issuers incur in order to comply with increased regulation. Forseveral years, token issuers completely disregarded security issuancelaws, either due to unfamiliarity with regulations, insistence thattheir offerings were not securities, or due to the belief thatregulators were turning a blind eye. Given that regulators have notturned a blind eye to ICOs, the pace of fundraising has slowedconsiderably. Issuers must now navigate complex, time consuming, andcost-prohibitive regulatory issues. As such, many would-be ICO issuersare finding the regulatory climate too convoluted and are forgoing thetoken fundraising model altogether.

Prior to modern regulations, ICO investors were able to resell theirtokens at any time after issuance. This is no longer possible in mostjurisdictions. In the U.S., for example, most token issuances must beheld by the initial investor for at least one year before they can beresold due to the tokens being deemed securities. This restriction,coupled with a more bearish market, has caused investors to invest morecarefully because they do not have the option to exit their position forat least a year.

Early token issuers raised capital to finance the build-out oftechnology protocols and applications. As the industry has matured,issuers are now creating new applications for digital tokens and smartcontracts. Issuers are creating products that have establishedreal-world value, while still retaining the benefits and efficiencies ofblockchain technology. Examples of the products include asset-backedtokens in which the token represents an interest in a fund (e.g.,Blockchain Capital's BCAP token) or other asset (e.g., fiat currencies,real estate, commodities). Some companies seek to issue tokensrepresenting traditional equity instruments (e.g., Finom's FIN tokenrepresented a share of Common Stock). These assets are commonly called“security tokens,” and the initial sale of tokenized securities iscommonly called a security token offering (STO). The STO market mayrapidly become a larger market than the current utility token marketonce regulations are clarified.

The success of many startups in raising material capital has encouragedother private companies, many further along in their lifecycle, toleverage the power and flexibility of token financings. In fact, privatetechnology companies with market caps in excess of $1 billion (commonlyreferred to as “unicorns”) have planned to tokenize parts of theirexisting businesses. Tokenized security issuances by globally recognizedcompanies promise to bring more mainstream investors to the tokenmarket.

Regulators were initially slow to react to the advent ofcryptocurrencies and token economies. However, regulators have forcedtoken platforms to evolve. Decentralized cryptocurrencies and digitaltokens are dramatically different than traditional fiat currencies andsecurities. Blockchain technology has led to the creation of new kindsof financial instruments and transactions. As a result, regulatorsaround the world needed time to understand these new technologies andtheir impact on financial markets. In 2017, regulators began to takepositions on how tokens should be treated under securities laws.

The new regulatory demands have created a significant challenge fortoken trading platforms. Online trading platforms are global and, assuch, users come from many different jurisdictions. This problem wasoverlooked when platforms took the position that they were not tradingsecurities and were not subject to regulation. However, regulatorybodies have now deemed that many tokens are securities that will getregulated accordingly, along with the entities that facilitate theirtrading.

Trading platforms have limited options to respond to recent regulations.For example, the trading platforms must either develop a compliancemechanism in each jurisdiction where they have a material number ofusers or refuse to facilitate security token trading for those users.The former could be operationally impractical, and the latter couldresult in a significant loss of revenue. Alternatively, the tradingplatforms can choose to defy regulators and become “black hat”operations that evade government enforcement actions. It appearsunlikely that platform operators could successfully circumventgovernment action over the long term and such platforms could becomefringe players that are unable to retain mainstream investors andinstitutions. The uncertainty regarding how platforms and regulatorsshould proceed has hindered ICO markets.

In the U.S., the SEC has stated its position on ICOs in its enforcementaction against issuers of the DAO token. Relying on established caselaw, the SEC applied the “Howey test” to determine if the DAO tokenswere securities. Succinctly stated, the Howey test holds that if thevalue of a token depends on what the issue builds with the proceeds ofthe token sale, then the token is a security. The SEC remains active inenforcing its position that many tokens are securities. A group wasformed within the SEC for reviewing token offerings and ensuringcompliance with U.S. securities laws. Enforcement actions have sincebeen taken against issuers during their ICOs, shutting down thoseofferings and forcing a return of capital raised.

Currently, securities tokens can only be legally traded in the U.S. onan ATS or national exchange. Accordingly, the SEC has warned investorsabout unlicensed platforms presenting themselves as legitimateexchanges. As a result, existing token platforms have been served withsubpoenas and voluminous information requests for investigations thatcould result in legal action. Regulatory review of cryptocurrencytrading platforms has been undertaken for some offshore platformsincluding Binance, Bittrex, Huobi, and many others. The investigationwill likely present onshore and offshore crypto trading platforms withanother regulator review of their compliance in serving U.S. investors.In addition, legislation has been recently introduced to regulatecryptocurrency and other tokens as a new, legally distinct asset class.This has essentially shutdown the ICO model of fundraising in the U.S.

As such, security token offerings have a cost-prohibitive, timeconsuming path that seems completely unnecessary. As a result, issuers,trading platforms, advisors and other token service providers have puttheir U.S. businesses on hold until the SEC provides greater regulatoryclarity and a compliant way to trade tokens.

In China, the central government has not yet released a detailed policyon cryptocurrencies and tokens. But the country's actions suggestChinese authorities may take a hardline on tokens. Regulators havebanned ICOs and ordered domestic cryptocurrency exchanges to stoptrading. Companies that already issued tokens have been required torefund money to investors. However, over-the-counter (OTC) trading ofbitcoin and other cryptocurrencies continues. Investors flocked tooverseas trading services or are using virtual private networks to tradetokens in Japan and Hong Kong. Chinese officials have reportedlyconsidered whether to block access to these foreign exchanges as well.The Cyberspace Administration of China (CAC) doubled down on theiranti-crypto measures by requiring that chat app providers such as WeChatcomply with public orders to eliminate messages regardingcryptocurrency. In addition, the security token offerings have beenconsidered as illegal financial activity.

Japan has been more welcoming to cryptocurrencies perhaps because it hasa history of being a foreign currency exchange center. The FinancialServices Agency of Japan (FSA) said that certain digital coins can beconsidered “virtual currency” if people use them to pay for goods andservices or exchange for other digital currencies. It has been reportedthat the FSA will launch regulations limiting individual investment inICOs to protect investors.

In Singapore, the Monetary Authority of Singapore (MAS) has focused itsactivity around anti-money laundering regulations. The MAS saidsecurities laws might also apply to ICOs. The MAS said it couldcategorize some tokens as “capital market products” which would beregulated under the country's Securities and Futures Act. The MASreleased case studies of tokens and their analysis of whether the tokenwould be a security. The MAS updated its guidance to elaborate on howparties involved in a digital asset offering should adhere to anti-moneylaundering (AML) and counter financing of terrorism (CFT) regulations.

In South Korea, the Financial Services Commission (FSC) prohibiteddomestic companies and startups from holding ICOs. China's crackdown ontoken exchanges prompted many Chinese investors to migrate their tradingactivity to South Korean exchanges. In an effort to limit cryptocurrencyand token trading activity to adults trading on local exchanges, SouthKorea banned foreigners and minors from creating exchange accounts. Thecountry also prohibited anonymous accounts. As a result, many SouthKorean blockchain companies set up crypto-havens in Switzerland,Gibraltar and Singapore. The South Korean government has consideredlifting the ICO ban with plans to tax cryptocurrencies and ICOs. Like inother jurisdictions, crypto platforms have been the subject ofinvestigations and criminal actions have been taken when deemednecessary.

In the European Union, the European Securities and Markets Authority(ESMA) said it would only regulate ICOs if the tokens qualify asfinancial instruments. At the same time, the ESMA emphasized the need toensure investors are well informed and protected. To combat moneylaundering and funding of terrorist groups, the European Council isconsidering steps to ensure investors identify themselves. The EuropeanCommission (EC) has also banned EU countries from creating their owncryptocurrencies, fearing banks will lose control over the money supply.European finance ministers have agreed that there in no hurry toaccelerate crypto regulation; instead, they prefer to wait on analysesfrom authorities before deciding on next steps. The European BankingAuthority (EBA) and ESMA separately published reports on crypto assets.The EBA called on the EC to assess if regulatory action will be neededto achieve an EU-wide approach to crypto. ESMA, on the other hand,analyzed how existing securities laws could be applied to digitalassets, and advised the EC of any regulatory gaps that must beconsidered.

The disclosed GLASS network overcomes many of the aforementioneddrawbacks and barriers that exist due to diverse jurisdictional factors.The GLASS network is the first cross-border transaction settlementnetwork. Prior platforms were licensed to trade cryptocurrencies intheir limited local jurisdictions. Some unlicensed ICO platforms andadvisors in the U.S. seek to register with authorities or have alreadycommenced the process of doing so. An entity in the U.S. can tradedigital securities with the appropriate registrations. However, thatentity may not have demonstrated the ability to provide custody forclients' digital securities and may lack experience as a secondarymarketplace for private securities. Given the arduous registrationprocess, there are currently no ATSs trading material volumes ofunregistered securities.

U.S. regulatory approvals required for a security token trading platforminclude various features. A feature includes creation or acquisition ofa broker-dealer member of FINRA with a membership agreement thatspecifically authorizes transactions in unregistered, uncertificatedsecurities of a non-reporting issuer. Other features includeregistration of that broker-dealer with Securities Investor ProtectionCorporation (SIPC) and registration of that broker-dealer with the SECas an ATS and completion to the satisfaction of the SEC of a Form ATS.

Regulatory approvals are just the first step in becoming a compliant andfully operational token trading platform. For example, in the U.S., atoken trading platform needs to demonstrate achievement of the followinglist of requirements to FINRA before being permitted to commence tradingoperations:

-   -   A technology and process that can reliably accredit investors to        preserve an exemption from registration requirements under U.S.        securities laws;    -   A technology and process that can reliably ensure proper        collection and archival of customer information and documents        and that apply Know Your Customer (KYC) requirements to        transacting parties;    -   A technology, process, and licensed personnel that can reliably        ensure transactions are vetted pursuant to Anti-Money Laundering        (AML) laws;    -   Trading and order matching systems that meet a host of technical        requirements including Best Execution requirements (i.e., the        obligation of broker-dealers and market makers to execute        customer orders at the best available price);    -   A technology and process that meets FINRA mandated cybersecurity        requirements;    -   Adequately trained, FINRA licensed (typically Series 7 and 63)        individuals to manage transactions and any customer interactions        regarding securities; and    -   FINRA registered compliance staff to oversee those individuals.

Finally, additional compliance procedures are necessary for a registeredbroker-dealer to maintain custody of digital assets. The complianceprocedures include compliance with SEA Rule 15c3-3: enhanced disclosurerequirements, to custody client funds; and advanced technological stackand rigorous internal procedures to ensure safety of clients' custodieddigital assets.

Unlike most U.S. platforms that are still in the registration process orthat have yet to start the registration process, the disclosed networkhas presumably completed its first secondary digital securitytransaction and is able to distribute and trade security tokens. Assuch, the disclosed GLASS network has navigated an increasingly complexregulatory landscape to acquire the appropriate registrations andlicenses to trade unregistered securities in the U.S. and in, forexample, Singapore, Dubai, and Hong Kong.

The Global Liquidity and Settlement System (GLASS)

The GLASS network is the first decentralized settlement network forcross-border trades that meet applicable regulations. By ensuringcompliance regardless of the locations of the buyer, seller, or tradingplatform connecting, and regardless of whether the token traded is asecurity, the GLASS network can solve regulatory constraints currentlyon token trading ecosystem. In one embodiment, the GLASS networkincludes two types of participants: settlement providers and tradereferrers as described earlier.

FIG. 1 is a high-level diagram of a process 100 of the GLASS networkaccording to some embodiments of the present disclosure. As illustrated,global buyers and sellers 102 place orders on a security token exchange104 (trade referrer). The trades are then encrypted and send to ablockchain smart contract with secure messaging 106. The settlementcertificates are then sent to a settlement provider in the buyer'sjurisdiction 108.

As mentioned earlier, settlement providers are regulated entities (e.g.,ATS, broker-dealers, recognized market operators). There is preferablyat least one settlement provider in each country, which is licensed tofacilitate security token trades by residents of that jurisdiction. Insome embodiments, the GLASS network has an immediate settlementcapability in the U.S. Any licensed subsidiaries in foreign countriescan expand the GLASS network's regional coverage. Other out-of-networkregulated entities could be encouraged to join the GLASS network andbecome settlement providers to earn settlement fees.

Any trading platform can join GLASS as a trade referrer, includingunlicensed exchanges, broker-dealers and other transactional platformslegally permitted to refer non-resident client trades to regulatedentities in the clients' home jurisdictions. When a trade referrermatches a foreign buyer and/or foreign seller in a token trade, itsubmits the trade to the network by: (a) sending, in encrypted format,the client and trade information that the settlement provider will needto vet the trade using a GLASS secure protocol, and (b) “depositing” therequired fees in GLASS tokens into a GLASS ERC20 smart contract. Partiesin trade must agree to use a third-party broker-dealer.

The settlement provider performs the required compliance functions forthe trade in its jurisdiction (e.g., accreditation, KYC, AML) andassumes obligations to the client that are necessary under localregulatory requirements. If the trade is compliant, the settlementprovider deposits a digital compliance certificate into the settlementnetwork smart contract and sends the trade referrer instructions torelease the client's payment/tokens to the counterparty. The tradereferrer records the trade confirmation using the smart contract. Thesettlement provider completes the process by making any necessaryreports or filings with local regulators. The compliance record for thetrade is immutably stored by the GLASS smart contract should the tradereferrer need to present any regulators with the compliance certificate.

FIG. 2 is a block diagram that shows a flow 200 to submit trades in anetwork according to some embodiments of the present disclosure. Asshown, to submit trades to the network, trade referrers 202 includeGLASS tokens to pay a network and a settlement fee of the smart contract204. The GLASS network fee may be a relatively small, non-refundable feethat is paid by the trade referrer to compensate settlement providers206 for being part of the network and reviewing trades for settlement.It also discourages any trade referrer from submitting spam trades. Thenetwork fee is shared by all of the settlement providers in proportionto their stake in GLASS tokens.

The settlement fee may be a relatively larger fee that is retained bythe settlement provider only if it is able to clear the referred trade.The settlement fee compensates the settlement provider for the liabilitythey assume by processing the transaction within their regulated entity.Unlike the network fee, the settlement fee is retained solely by thesettlement provider clearing the trade. If a referred trade is notcompliant and thus cannot be cleared by the settlement provider, thesettlement fee may be returned to the trade referrer submitting thetrade.

In some embodiments, a supervising entity is responsible for reviewingsettlement providers seeking to join the GLASS network and confirms thatthey are appropriately licensed in their local jurisdictions. In somecases, approval of a settlement provider requires a legal opinion fromlegal counsel in the same jurisdiction as the settlement provider.Approved settlement providers will be added to the network's whitelist.The managing entity will seek to balance the number of settlementproviders in each jurisdiction with the jurisdiction's trade volume.This will ensure that there is neither an over- nor undersupply ofsettlement providers in each jurisdiction. The managing entity can alsohold settlement providers to the network's governance, confidentialityand security standards.

The GLASS network can scale with any number of settlement providers andas transaction volumes increase. As a result, settlement will becomemore and more efficient and costs will be continually lowered. It willtherefore become relatively more and more expensive for exchanges tosettle their token transactions by forming and operating their ownbroker-dealers or other regulated entities.

Example Technological Considerations

The GLASS network has settlement functionality based on GLASS smartcontracts. The settlement functionality can be implemented by using theSolidity programming language on the Ethereum blockchain with an ERC20compliant token (“GLASS token”). The GLASS token and GLASS smartcontracts could be used to transfer settlement fees, network fees, andstakes for settlement providers. Although the GLASS token is hosted onthe Ethereum blockchain, trades from any other blockchain can be settledon the GLASS network.

Any confidential information including trade data, buyer information,and seller information can be stored off-chain by trade referrers andsettlement providers in encrypted JSON files. In some embodiments, onlytrade referrers and settlement providers that facilitate a particulartrade can access an associated encrypted JSON file that stores theconfidential information. Compliance certificates can be anchored toblockchain transactions by using cryptographic hashes. In someembodiments, trade details can be encrypted and routed peer-to-peerbetween parties. In some embodiments, only cryptographic hashes of datawith one-time pads are stored on the blockchain as identifiers fornotarization purposes.

The public Ethereum blockchain can be used for whitelisting settlementprovider blockchain addresses and trade referrer addresses. In someembodiments, compliance certificates are stored publicly in Ethereumblockchain transactions for trade referrers and settlement providers toaccess at any time.

FIG. 3 is a flow diagram that illustrates a settlement process 300 onthe GLASS according to some embodiments of the present disclosure. Instep 302, a Referrer SDK of the trade referrer allocates funds for feesin GLASS tokens. In step 304, the Referrer SDK approves the funds forthe GLASS tokens. In step 306, the trade referrer refers a trade to thesettlement provider and puts fees in escrow. In step 308, the ReferrerSDK refers values of the trade to a Notary node. The values can includea trade hash and settler address. In step 310, the Notary nodecommunicates a Boolean value to validate a whitelisted trade referrer,associated with a particular address, to the Settler Settings.

In step 312, the Notary node communicates a Boolean value to validate awhitelisted settler, associated with a particular settler address, tothe Settler Settings. In step 314, Network Settings communicate aBoolean value for whether there is enough settler stake associated withthe settler address to a Staking node. In step 316, the Notary nodecommunicates to get the network fee associated with the NetworkSettings. In step 318, the Notary node communicates to get the settlerfee, associated with the settler address, to the Settler Settings. Instep 320, the Notary node communicates escrow information to the Stakingnode. The escrow information can include the trade hash, settleraddress, and max fee. In step 322, the Notary node checks a Booleanvalue to determine if the escrow was enough. In step 324, the ProviderSDK of the settler provider communicates an approval to the Notary node.The approval is associated with the trade hash. In step 326, the Notarynode performs a transfer of the GLASS tokens, where the transfer isperformed based on the referrer address and the settler address. In step328, the Notary node transfers a network fee to all the settlers inproportion to their stakes in GLASS tokens.

Governance of the GLASS Network

GLASS includes a governing mechanism to ensure that GLASS networkparticipants abide by policies including rules of the network. Forexample, a governing mechanism can serve as an administrator that actsas a governance body. The governing mechanism can review and implementpolicy changes, including setting network fees and/or settlement fees,as necessary to scale and improve the effectiveness of the GLASSnetwork. At operational efficiency and scale, the governing mechanismcan be designated by settlement providers by, for example, voting inproportion to the GLASS tokens that respective settlement providershold.

In some embodiments, the governing mechanism can function as anadministrator. Alternatively, the administrator can be separate from thegoverning mechanism. The network administrator can review settlementproviders seeking to join the GLASS network and ensure that they arelicensed in compliance with local jurisdictions. In some embodiments,all trade referrers can readily join the GLASS network and settle tradesonce they stake the required number of GLASS tokens in the GLASSnetwork. The settlement providers in each jurisdiction can then acceptor reject referred trades on a per-trade basis. In addition, individualtrade referrers are whitelisted by individual settlement providers tocomply with local rules. Furthermore, subject to review by the governingmechanism, trade referrers and/or settlement providers who violate thenetwork's rules (e.g., code of conduct) or are unsuitable to participatein the GLASS network will be removed from the GLASS network's smartcontract whitelists and will not be able to use the GLASS network torefer and settle trades.

Posting Marketplace

In some embodiments, a posting marketplace is integrated with the GLASSnetwork. The posting marketplace is a U.S. ATS that is authorized totrade digital assets. The posting marketplace connects numerous buyers,sellers, and issuers of unregistered securities in billions of dollarsin compliant transactions.

The GLASS network can comply with SEC rules to trade unregistered,uncertificated securities held on distributed ledgers (i.e., securitytokens). As such, an ATS can execute a secondary digital securitytransaction in arbitrary tokens issued by arbitrary blockchain entities.The posting is enabled for trading and custody of digital securities inthe U.S. Accordingly, the posting marketplace allows companies to issuetheir security tokens in accordance with U.S. securities laws and buyersand sellers can trade them compliantly. A posting marketplace can joinGLASS as an anchor tenant on the network, providing settlement for tradereferrers.

As a FINRA-approved clearing broker-dealer, investor participants on theposting marketplace can deposit and custody fiat currencies,cryptocurrencies, and digital tokens into real brokerage accounts,regardless of whether they are securities. From those brokerageaccounts, they will be able to buy and sell cryptocurrencies, utilitytokens, and security tokens as well as trade shares in leading privategrowth companies (e.g., unicorns). The participants can also accessproprietary research to gain insight into the prospects for tokenissuers and the value of their tokens.

In some embodiments, token issuers can use online offering process toconduct their token offerings as crowd sales under Section 506(c) ofRegulation D (i.e., “crowd sales” to the public). In addition toexisting investor relationships, issuers can leverage the network sales,marketing, and distribution capabilities. This includes teams ofindividuals located in different jurisdictions around the world. Thesales teams have relationships with numerous private technology companyinvestors transacting on the postings marketplace.

After the offering, token issuers can support their network's ecosystemby connecting and communicating with token holders on the GLASS network,which publishes research and data about private technology companies.

FIG. 5 is a screen view of a web security token trading interface thatcould be used to track and manage security token trading information.For example, the investor participants can utilize the interface to viewvaluation benchmarks and indexes tracking the value of tokens. Issuerparticipants can make financial disclosures via the interface to tokenholders, where the disclosures are necessary to support compliantsecondary trading in the U.S. They can also track and manage their tokenholder communities via their company page of a security token tradingwebsite.

GLASS Tokens

GLASS tokens can be used by participants on the GLASS network. In someembodiments, a maximum number of GLASS tokens (e.g., one billion) aregenerated via smart contracts during a single token generation event. Insome embodiments, the GLASS tokens can be utilized for settlementpurposes. For example, the GLASS network can use GLASS tokens to buildand incentivize a community of crypto exchanges around the world. Forparticipating exchanges, the GLASS network can provide a sharedsettlement infrastructure. The use of a shared settlement infrastructurecan be taxed by charging GLASS tokens to participants in proportion totheir usage. To encourage service providers to join the GLASS networkand maintain the shared settlement infrastructure, the GLASS network canpay GLASS tokens to service providers.

Exchanges can have one of two roles on GLASS, each with its own tokenutility and operations. Trade referrers participate in staking GLASStokens to submit token trades to the network for compliant settlements.Settlement providers can earn settlement fees and share in network feesby settling trades for trade referrers. The network fees paid by tradereferrers are distributed to all settlement providers in proportion tothe tokens that they have staked. The settlement fee is paid to thesettlement provider only if the trade is settled. If the trade is notsettled, the settlement fee is returned via smart contract to the tradereferrer.

The disclosed GLASS network can be implemented as a system that includescomponents such as servers and other devices that are interconnectedover existing networks such as the Internet. The GLASS network mayinclude any combination of private, public, wired, or wireless portions.The data or information communicated over the GLASS network may beencrypted or unencrypted at various locations or along differentportions of the network. Each component of the system may includehardware and/or software to process data or information, performoperations, and communicate over networks. A device or a componentassociated with the GLASS network may include a processor, memory orstorage, a network transceiver, a display, OS and application software,etc. Examples of devices include smartphones, tablet computers, personalcomputers, and any device that is capable of communicating on the GLASSnetwork.

Order Referring and Token Escrow Swap

Some trade referrers may not have the inventory to match both sides of atrade and rather will have only the buy or sell side. Additionally,greater liquidity needs of the GLASS network suggest accepting only oneside of an order and matching on behalf of the trade referrer isprudent. As such, detailed below is how an order referrer would submitone side of a trade, leverage a token escrow swap system to facilitatesettlement of the trade, and provide liquidity for an order book sharedby GLASS network participants.

FIGS. 4A through 4D are flow diagrams for a token escrow swap processaccording to some embodiments of the present disclosure. The figuresillustrate a combination of operations to complete a token escrow swapprocess. The operations include a buy operation, a sell operation, anoperation to fill a buy order, and an operation to fill a sell order. Anoperation is performed by one or more nodes of a network. A node mayrepresent a processing device such as a computer terminal, peripheraldevice, or mobile device. An operation of the token escrow swap processcan be performed by a combination of processing devices. As such,different aspects of an operation may be performed by differentprocessing devices. Accordingly, although FIGS. 4A through 4D refer toindividual nodes, each node may represent a combination of nodes ordevices.

A buy/sell order that is placed on the GLASS network is submitted to anapplication programming interface (API), which converts each order intoan encoded transaction that is submitted to the blockchain. Thesubmission of a buy/sell order represents and intent that authorizes awithdrawal of tokens. The buy/sell order persists on the blockchain.Once the other half of the buy/sell order is submitted, and a match ismade, due to allowances that were granted for the swap, the assets arepulled from addresses for assets of the buyer and seller. The pulledassets are immediately swapped and transferred between buyer and sellernodes. The orders can be any type of order including a limit order ormarket order, for example. Further, the matching of buy-sell orders canbe performed manually or automatically to balance the costs of utilizingthe blockchain.

FIG. 4A is a flow diagram for a buy order operation 400-1 of the tokenescrow swap according to some embodiments of the present disclosure. Instep 402, a buyer node places a buy order through a broker-dealer node.In step 404, the broker-dealer node sends attributes of the buy order toa market node. The attributes may include any of approved variablesassociated with the network or providers.

In step 406, the market node creates an unsigned token allowancetransaction for the buy order. In step 408, the market node creates anunsigned buy order transaction. In step 410, the unsigned transactionsare sent by the market node to the broker-dealer node. In step 412, theunsigned allowance transaction is sent by the broker-dealer node to thebuyer node. In step 414, the buyer node signs the allowance transactionand sends the signed allowance transaction with a cryptocurrency walletfor cryptocurrency tokens. In step 416, the broker-dealer node signs andsends the buy order transaction with a cryptocurrency wallet to a tokenescrow swap node.

The cryptocurrency wallet may include a device, physical medium, programor a service that stores public and/or private keys and can be used totrack ownership, receive, or spend a cryptocurrency. In someembodiments, the cryptocurrency wallet is an Ethereum wallet thatconnects to the Ethereum blockchain to manage, transfer, or receiveethers and to interact with ERC20 tokens on the Ethereum blockchain. Anexample is a MetaMask wallet, which is an Ethereum wallet that lets auser connect to the Ethereum blockchain. In some embodiments, anEthereum wallet is a web wallet that has several extensions fordifferent browsers. As an Ethereum wallet, a user can use it formanaging, transferring, receiving Ethers and to interact with numerousERC20 tokens on the Ethereum blockchain. The Ethereum wallet also allowsa user to access the decentralized web by using several Ethereum DApps.

FIG. 4B is a flow diagram of a sell order operation 400-2 of the tokenescrow swap according to some embodiments of the present disclosure. Instep 418, a seller node places an order through the broker-dealer node.In step 420, the broker-dealer node sends attributes of the sell orderto the market node. In step 422, the market node creates an unsignedtoken allowance transaction for the sell order. In step 424, the marketnode creates an unsigned sell order transaction. In step 426, theunsigned transactions are sent by the market node to the broker-dealernode. In step 428, the unsigned allowance transaction is sent by thebroker-dealer node to the buyer node. In step 430, the buyer node signsthe allowance transaction and sends the signed allowance transactionwith a cryptocurrency wallet for security tokens. In step 432, thebroker-dealer node signs and sends the sell order transaction with acryptocurrency wallet to the token escrow swap node.

FIG. 4C is a flow diagram of an operation 400-3 to fill a buy order forthe token escrow swap according to some embodiments of the presentdisclosure. In step 434, an agent node matches buy/sell orders with aBest Execution for the market node. In step 436, the market node causesfilling of the buy order with sell orders through the token escrow swapnode in accordance with the buy/sell order matching. In step 438, arequest is made to transfer currency tokens to the token escrow swap forthe buy order. In step 440, the currency tokens are transferred to thebuyer node. In step 442, the currency tokens are then transferred fromthe buyer node to the token escrow swap node.

For each sell order, a sequence of three ordered steps 444, 446, and 448is performed. In step 444, a request is made by the token escrow swapnode to transfer security tokens to the token escrow swap for the sellorders. In step 446, the security tokens are transferred to the sellernode. In step 448, security tokens are then transferred from the sellernode to the token escrow swap node.

In step 450, the token escrow swap node sends the security tokens to thebuyer node. In step 452, the security tokens are sent to the buyer node.

For each sell order, a sequence of two ordered steps 454 and 456 areperformed. In step 454, the token escrow swap node sends currency tokensfor the seller node. In step 456, the currency tokens are received bythe seller node.

FIG. 4D is a flow diagram of an operation 400-4 to fill a sell order forthe token escrow swap according to some embodiments of the presentdisclosure. In step 458, the agent node matches buy/sell orders with aBest Execution for the market node. In step 460, the market node causesfilling of the sell order with buy order(s) through the token escrowswap node. In step 462, a request is made to transfer security tokens tothe token escrow swap node for the sell order. In step 464, the securitytokens are transferred to the seller node. In step 464, the securitytokens are transferred from the seller node to the token escrow swapnode.

For each buy order, a sequence of three ordered steps 468, 470, and 472is performed. In step 468, a request is made by the token escrow swapnode to transfer currency tokens to the token escrow swap for the buyorders. In step 470, the requested currency tokens are then transferredto the buyer node. In step 472, the currency tokens are transferred fromthe buyer node to the token escrow swap node.

In step 474, the token escrow swap node sends currency tokens for theseller node. In step 476, the currency tokens are sent to the sellernode.

For each buy order, a sequence of two ordered steps 478 and 480 isperformed. In step 478, the token escrow swap node sends security tokensfor the buyer node. In step 480, the security tokens are received by thebuyer node.

FIG. 6 is a block diagram illustrating an example of a processing devicein which at least some operations described herein can be implemented.The processing system can be processing device 600, which represents asystem that can run any of the methods/algorithms described above. Asystem may include two or more processing devices such as represented inFIG. 6, which may be coupled to each other via a network or multiplenetworks. A network can be referred to as a communication network.

In the illustrated embodiment, the processing device 600 includes one ormore processors 602, memory 604, a communication device 606, and one ormore input/output (I/O) devices 608, all coupled to each other throughan interconnect 610. The interconnect 610 may be or include one or moreconductive traces, buses, point-to-point connections, controllers,adapters and/or other conventional connection devices. Each of theprocessors 602 may be or include, for example, one or moregeneral-purpose programmable microprocessors or microprocessor cores,microcontrollers, application specific integrated circuits (ASICs),programmable gate arrays, or the like, or a combination of such devices.

The processor(s) 602 control the overall operation of the processingdevice 600. Memory 604 may be or include one or more physical storagedevices, which may be in the form of random-access memory (RAM),read-only memory (ROM) (which may be erasable and programmable), flashmemory, miniature hard disk drive, or other suitable type of storagedevice, or a combination of such devices. Memory 604 may store data andinstructions that configure the processor(s) 602 to execute operationsin accordance with the techniques described above. The communicationdevice 606 may be or include, for example, an Ethernet adapter, cablemodem, Wi-Fi adapter, cellular transceiver, Bluetooth transceiver, orthe like, or a combination thereof. Depending on the specific nature andpurpose of the processing device 600, the I/O devices 608 can includedevices such as a display (which may be a touch screen display), audiospeaker, keyboard, mouse or other pointing device, microphone, camera,etc.

While processes or blocks are presented in a given order, alternativeembodiments may perform routines having steps, or employ systems havingblocks, in a different order, and some processes or blocks may bedeleted, moved, added, subdivided, combined, and/or modified to providealternative or sub-combinations, or may be replicated (e.g., performedmultiple times). Each of these processes or blocks may be implemented ina variety of different ways. In addition, while processes or blocks areat times shown as being performed in series, these processes or blocksmay instead be performed in parallel, or may be performed at differenttimes. When a process or step is “based on” a value or a computation,the process or step should be interpreted as based at least on thatvalue or that computation.

Software or firmware to implement the techniques introduced here may bestored on a machine-readable storage medium and may be executed by oneor more general-purpose or special-purpose programmable microprocessors.A “machine-readable medium”, as the term is used herein, includes anymechanism that can store information in a form accessible by a machine(a machine may be, for example, a computer, network device, cellularphone, personal digital assistant (PDA), manufacturing tool, any devicewith one or more processors, etc.). For example, a machine-accessiblemedium includes recordable/non-recordable media (e.g., read-only memory(ROM), random-access memory (RAM), magnetic disk storage media, opticalstorage media, flash memory devices), etc.

Note that any and all of the embodiments described above can be combinedwith each other, except to the extent that it may be stated otherwiseabove or to the extent that any such embodiments might be mutuallyexclusive in function and/or structure. Although the present inventionhas been described with reference to specific exemplary embodiments, itwill be recognized that the invention is not limited to the embodimentsdescribed but can be practiced with modification and alteration withinthe spirit and scope of the disclosed embodiments. Accordingly, thespecification and drawings are to be regarded in an illustrative senserather than a restrictive sense.

Physical and functional components (e.g., devices, engines, modules, anddata repositories) associated with processing device 600 can beimplemented as circuitry, firmware, software, other executableinstructions, or any combination thereof. For example, the functionalcomponents can be implemented in the form of special-purpose circuitry,in the form of one or more appropriately programmed processors, a singleboard chip, a field programmable gate array, a general-purpose computingdevice configured by executable instructions, a virtual machineconfigured by executable instructions, a cloud computing environmentconfigured by executable instructions, or any combination thereof. Forexample, the functional components described can be implemented asinstructions on a tangible storage memory capable of being executed by aprocessor or other integrated circuit chip. The tangible storage memorycan be computer-readable data storage. The tangible storage memory maybe volatile or non-volatile memory. In some embodiments, the volatilememory may be considered “non-transitory” in the sense that it is not atransitory signal. Memory space and storage described in the figures canbe implemented with the tangible storage memory as well, includingvolatile or non-volatile memory.

Each of the functional components may operate individually andindependently of other functional components. Some or all of thefunctional components may be executed on the same host device or onseparate devices. The separate devices can be coupled through one ormore communication channels (e.g., wireless or wired channel) tocoordinate their operations. Some or all of the functional componentsmay be combined as one component. A single functional component may bedivided into sub-components, each sub-component performing separatemethod steps or a method step of the single component.

In some embodiments, at least some of the functional components shareaccess to a memory space. For example, one functional component mayaccess data accessed by or transformed by another functional component.The functional components may be considered “coupled” to one another ifthey share a physical connection or a virtual connection, directly orindirectly, allowing data accessed or modified by one functionalcomponent to be accessed in another functional component. In someembodiments, at least some of the functional components can be upgradedor modified remotely (e.g., by reconfiguring executable instructionsthat implement a portion of the functional components). Other arrays,systems and devices described above may include additional, fewer, ordifferent functional components for various applications.

Aspects of the disclosed embodiments may be described in terms ofalgorithms and symbolic representations of operations on data bitsstored in memory. These algorithmic descriptions and symbolicrepresentations generally include a sequence of operations leading to adesired result. The operations require physical manipulations ofphysical quantities. Usually, though not necessarily, these quantitiestake the form of electric or magnetic signals that are capable of beingstored, transferred, combined, compared, and otherwise manipulated.Customarily, and for convenience, these signals are referred to as bits,values, elements, symbols, characters, terms, numbers, or the like.These and similar terms are associated with physical quantities and aremerely convenient labels applied to these quantities.

While embodiments have been described in the context of fullyfunctioning computers, those skilled in the art will appreciate that thevarious embodiments are capable of being distributed as a programproduct in a variety of forms and that the disclosure applies equally,regardless of the particular type of machine or computer-readable mediaused to actually effect the embodiments.

What is claimed is:
 1. A computer-implemented method for performing adigital currency escrow swap on a network of nodes, the methodcomprising: (i) performing a transfer-in operation including: receivingan indication of a transfer-in order placed by a transfer-in party nodethrough an intermediate node; sending attributes of the transfer-inorder from the intermediate node to a common node; forwarding anindication of an unsigned digital currency allowance transfer for thetransfer-in order to the transfer-in party node; signing an unsignedtransfer-in order transfer received from the common node; and sendingthe signed transfer-in order transfer with a digital wallet to an escrowswap node; (ii) performing a transfer-out operation including: receivingan indication of a transfer-out order placed by a transfer-out partynode through the intermediate node; sending attributes of thetransfer-out order from the intermediate node to the common node;forwarding an indication of an unsigned digital currency allowancetransfer for the transfer-out order to the transfer-out party node;signing the unsigned transfer-out order transfer received from thecommon node; sending the signed transfer-out order transfer with adigital wallet to the escrow swap node; (iii) performing atransfer-in-order finishing operation including: requesting a transferof digital currency to the escrow swap node to finishing the transfer-inorder; receiving the requested digital currency via the transfer-inparty node; (a) for each transfer-out order: requesting a transfer ofdigital securities to the escrow swap node; and transferring the digitalsecurities to the escrow swap node via the transfer-out party node;sending the digital securities from the escrow swap node to thetransfer-in party node; and (b) for each transfer-out order, causing, bythe escrow swap node, sending of the digital currency to thetransfer-out party node; (iv) performing a transfer-out-order finishingoperation including: requesting a transfer of digital securities to theescrow swap node; receiving the requested digital securities by theescrow swap node via the transfer-out party node; (a) for eachtransfer-in order: requesting transfer of digital currency to the escrowswap node; and transferring the requested digital currency to the escrowswap node via the transfer-in party node; sending the requested digitalcurrency from the escrow swap node to the transfer-out party node; and(b) for each transfer-in order, causing, by the escrow swap node,sending of digital securities to the transfer-in party node.
 2. Themethod of claim 1, wherein the unsigned digital currency allowancetransfer for the transfer-in order is signed by the transfer-in partynode with a digital wallet.
 3. The method of claim 2, wherein theunsigned digital currency allowance transfer for the transfer-out orderis signed by the transfer-out party node with a digital wallet.
 4. Themethod of claim 1, wherein matching of any transfer-out orders andtransfer-in orders is performed by an agent node other than theintermediate node or the common node.
 5. The method of claim 1, whereinperforming the transfer-in-order finishing operation or thetransfer-out-order finishing operation further comprises: matchingtransfer-in orders and transfer-out orders for the common node.
 6. Themethod of claim 1, wherein each digital wallet stores at least one of apublic key or a private key of a digital currency of the digitalcurrency escrow swap.
 7. The method of claim 1, wherein each digitalwallet is an Ethereum wallet that connects to an Ethereum blockchain totransfer ether.
 8. The method of claim 1, wherein each digital wallet isa MetaMask wallet.
 9. A system comprising: at least one hardwareprocessor; and at least one non-transitory memory storing instructions,which, when executed by the at least one hardware processor, cause thesystem to: (i) perform a transfer-in operation including causing thesystem to: receive an indication of a transfer-in order placed by atransfer-in party node through an intermediate node; send attributes ofthe transfer-in order from the intermediate node to a common node;forward an indication of an unsigned digital currency allowance transferfor the transfer-in order to the transfer-in party node; sign anunsigned transfer-in order transfer received from the common node; andsend the signed transfer-in order transfer with a digital wallet to anescrow swap node; (ii) perform a transfer-out operation includingcausing the system to: receive an indication of a transfer-out orderplaced by a transfer-out party node through the intermediate node; sendattributes of the transfer-out order from the intermediate node to thecommon node; forward an indication of an unsigned digital currencyallowance transfer for the transfer-out order to the transfer-out partynode; sign the unsigned transfer-out order transfer received from thecommon node; send the signed transfer-out order transfer with a digitalwallet to the escrow swap node; (iii) perform a transfer-in-orderfinishing operation including causing the system to: request a transferof digital currency to the escrow swap node to finishing the transfer-inorder; receive the requested digital currency via the transfer-in partynode; (a) for each transfer-out order: request a transfer of digitalsecurities to the escrow swap node; and transfer the digital securitiesto the escrow swap node via the transfer-out party node; send thedigital securities from the escrow swap node to the transfer-in partynode; and (b) for each transfer-out order, cause, by the escrow swapnode, to send of the digital currency to the transfer-out party node;(iv) perform a transfer-out-order finishing operation including causingthe system to: request a transfer of digital securities to the escrowswap node; receive the requested digital securities by the escrow swapnode via the transfer-out party node; (a) for each transfer-in order:request transfer of digital currency to the escrow swap node; andtransfer the requested digital currency to the escrow swap node via thetransfer-in party node; send the requested digital currency from theescrow swap node to the transfer-out party node; and (b) for eachtransfer-in order, cause, by the escrow swap node, to send of digitalsecurities to the transfer-in party node.
 10. The system of claim 9,wherein the digital currency includes security tokens.
 11. The system ofclaim 9, wherein the unsigned digital currency allowance transfer forthe transfer-in order is signed by the transfer-in party node with adigital wallet, and the unsigned digital currency allowance transfer forthe transfer-out order is signed by the transfer-out party node with adigital wallet.
 12. The system of claim 9, wherein matching of anytransfer-out orders and transfer-in orders is performed by an agent nodeother than the intermediate node or the common node.
 13. The system ofclaim 9, wherein each digital wallet stores at least one of a public keyor a private key of a digital currency of the digital currency escrowswap.
 14. The system of claim 9, wherein each digital wallet connects toan Ethereum blockchain to transfer ether.
 15. A computer-readablestorage medium, excluding transitory signals and carrying instructions,which, when executed by at least one data processor of a system, causethe system to: (i) perform a transfer-in operation including causing thesystem to: receive an indication of a transfer-in order placed by atransfer-in party node through an intermediate node; send attributes ofthe transfer-in order from the intermediate node to a common node;forward an indication of an unsigned digital currency allowance transferfor the transfer-in order to the transfer-in party node; sign anunsigned transfer-in order transfer received from the common node; andsend the signed transfer-in order transfer with a digital wallet to anescrow swap node; (ii) perform a transfer-out operation includingcausing the system to: receive an indication of a transfer-out orderplaced by a transfer-out party node through the intermediate node; sendattributes of the transfer-out order from the intermediate node to thecommon node; forward an indication of an unsigned digital currencyallowance transfer for the transfer-out order to the transfer-out partynode; sign the unsigned transfer-out order transfer received from thecommon node; send the signed transfer-out order transfer with a digitalwallet to the escrow swap node; (iii) perform a transfer-in-orderfinishing operation including causing the system to: request a transferof digital currency to the escrow swap node to finishing the transfer-inorder; receive the requested digital currency via the transfer-in partynode; (a) for each transfer-out order: request a transfer of digitalsecurities to the escrow swap node; and transfer the digital securitiesto the escrow swap node via the transfer-out party node; send thedigital securities from the escrow swap node to the transfer-in partynode; and (b) for each transfer-out order, cause, by the escrow swapnode, to send of the digital currency to the transfer-out party node;(iv) perform a transfer-out-order finishing operation including causingthe system to: request a transfer of digital securities to the escrowswap node; receive the requested digital securities by the escrow swapnode via the transfer-out party node; (a) for each transfer-in order:request transfer of digital currency to the escrow swap node; andtransfer the requested digital currency to the escrow swap node via thetransfer-in party node; send the requested digital currency from theescrow swap node to the transfer-out party node; and (b) for eachtransfer-in order, cause, by the escrow swap node, to send of digitalsecurities to the transfer-in party node.
 16. The computer-readablestorage medium of claim 15, wherein the unsigned digital currencyallowance transfer for the transfer-in order is signed by thetransfer-in party node with a digital wallet.
 17. The computer-readablestorage medium of claim 16, wherein the unsigned digital currencyallowance transfer for the transfer-out order is signed by thetransfer-out party node with a digital wallet.
 18. The computer-readablestorage medium of claim 15, wherein matching of any transfer-out ordersor transfer-in orders is performed by an agent node other than theintermediate node or the common node.
 19. The computer-readable storagemedium of claim 15, wherein a digital wallet stores at least one of apublic key or a private key of a digital currency of the digitalcurrency escrow swap.
 20. The computer-readable storage medium of claim15, wherein a digital wallet connects to an Ethereum blockchain totransfer ether.